Budget 2017: Expectations of India Inc and common man run high

Finance minister Arun Jaitley is expected to present a tax-payer friendly Union Budget 2017 on February 1, within months of the massive demonetisation exercise. With just a few days to go for the national financial plan, India Inc has already started bracing up for the big event.

The infrastructure sector expects the government to lay down detailed processes and timelines, including online clearances for new infrastructure projects and a fast-track route for big ticket projects.

Similarly, the real estate industry also has high expectations from the upcoming budget 2016-17. The stakeholders are demanding that the Central government should give relaxation in income tax rate, provide clarity on goods and services tax (GST), raise house rent allowance (HRA) deduction and announce policies to standardise construction materials in order to uplift the real estate industry.

Moreover, the government has also announced its intention to develop regional air strips in the country to give a boost to the aviation sector and also increase connectivity. The government is expected to put together a policy for development of such airports to attract more private players. Further, appropriate mechanisms are expected to be set up to ensure that development of these airports does not get stuck or delayed due to long approvals processes, bureaucratic hurdles, environmental clearances and so on. 

Meanwhile, since the common man is directly affected by the income tax provisions, every budget raises expectation levels of common man on this front. With the demonetisation move in November leading to massive inconvenience for the common man, many are expecting the government to increase the tax exemption slab from Rs 2.5 lakh to Rs 3 lakh. On the other hand, while the medical reimbursement provided by the employer is tax-free upto Rs 15,000, employees expect the said limit to be increased to Rs 50,000. They also want reintroduction of standard deduction for salaried employees. A complete exemption of receivables at maturity under National Pension Scheme (NPS) would be another welcome measure for the retirees.